ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Uncovering the Rise of AI-Powered Scams Targeting Tax Refunds

Here's how you can stay safe and safeguard your wallets.
PUBLISHED MAR 21, 2024
Cover Image Source: Unsplash|Photo by  Stock Birken
Cover Image Source: Unsplash|Photo by Stock Birken

As the digital world continues to evolve, so do the tricks of cybercriminals seeking to exploit people for financial gain. The latest target of the scammers is tax refunds as it is a great opportunity for them to dupe innocent taxpayers. The scammers leverage the AI tools which makes their schemes formulation and accomplishment easy. With the fresh tax season approaching, there's a looming risk of scammers trying to take refunds that should go to honest taxpayers. The IRS is constantly warning people to stay safe amidst these scams.

Image Source: Unsplash|Photo by Bermix Studio
Image Source: Unsplash|Photo by Bermix Studio

Before the wide availability of the internet to the masses personal information was relatively safe. But now, almost all confidential information can be easily accessed by scammers. These criminals collect details of victims like, pictures, location, bank details, and other personal data. How do they get this? The scammers can retrieve these details online, through legal or illegal databases, or by tricking you through phone calls, emails, or messages. Once they have access to sufficient data they file a fake ITR in your name to get the refunds, if any, and disappear leaving no trails. With the help of AI, scammers can create these fake documents in a short time and use more advanced methods to get around the security measures of the IRS and accounting firms.



 

The Internal Revenue System (IRS) revealed that in 2023, they received 294138 complaints concerning identity theft and flagged over one million tax returns as fraud cases. Ari Jacoby, founder and CEO of cybersecurity firm Deduce told Axios, "Tax identity fraud is a great crime because so many tax refund dollars are transacted and it's harder to spot suspicious behavior with a once-per-year transaction".

Victims blame the government for not imposing strict laws to protect the public's privacy. IRS is also criticized for not educating their department on the correct usage of AI and not spending enough on learning technology. Instead, there are accusations that they're using money from the Inflation Reduction Act to upgrade their computers and check more closely on big companies that have over $10 billion in assets. On the other hand, the U.S. Treasury leveraged the AI systems to discover the source of $375 million in fake transactions in 2023. These included fake checks, social security payments, and tax refunds, as per Treasury Deputy Secretary, Wally Adeyemo.



 

With the emergence of the tax refund scam and the tax filings approaching, the IRS is more concerned about making its taxpayers aware. Hence, they have suggested some of the ways that can help dodge these scam calls:

1. Don't wait for the deadline to file your taxes as it creates panic and people get vulnerable to scams.

2. Avail of the option to direct deposit in cases you are eligible for a tax refund.

3. Open an IRS account online to stop scammers from filing returns in your name.

4. If you receive any call, text, or email impersonating it to be from the IRS, don't trust it. The IRS in such cases communicates through official mail IDs.

5. Always call or mail the IRS if you receive any message that you believe is suspicious.

MORE ON MARKET REALIST
Guests on the show would run with it if they ever got that kind of money on Pawn Stars.
5 hours ago
The guest even said to keep the kids in the dark about how valuable these items were.
7 hours ago
The company had fantastic sales but a crushing debt with a high interest rate that the sharks hated.
10 hours ago
It was only Carey's second season in the show and he could have been part of a massive scandal.
1 day ago
“I won’t say anything, and you know why,” he said, with a gesture to zip his lips.
1 day ago
The ring was rescued by the guest's mother thanks to a stranger early in the morning.
1 day ago
"She blanked out. It happens to the best of us," a fan sympathized with the player.
1 day ago
The instrument originally belonged to the guest's grandfather who suffered a horrific injury.
2 days ago
The contestant's wife seemed embarassed at that point of time, and worried as well.
2 days ago
The co-founders of Dino Don got the shark that they always wanted on board.
2 days ago
One can understand why the measure is in place but the shopper was having none of it.
2 days ago
"My husband and I definitely noticed it! We had to rewind it a few times," a fan reacted.
2 days ago
All of the sharks agreed that she had a great product and the drive to be successful a businesswoman.
3 days ago
It's possible that the dog played a little part in making it easier for them to get a deal.
3 days ago
Without the help of his wife, the contestant would have gone home empty-handed.
3 days ago
The pawn store owner had a valid point since the item the guest had brought had numerous issues.
3 days ago
The contestant got the first part of the puzzle right but wasn't able to solve it in time.
3 days ago
"It's a lady's robe. A robe from 1750 is a very rare robe. The only other ones I know of this type, you'd have to go to Beijing," the appraiser said.
4 days ago
Harvey also got other hilarious answers, but nothing could match the woman's sass.
4 days ago
The Gronkowski family is famous for their contributions to America's sporting culture.
4 days ago